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Large garment units lend helping hand to SME counterparts
31
Mar '09
The small and medium sized textile and garment units (SME) have been the worst hit since the economic crisis began a few months ago. While the big units are able to still generate orders from their buyers, the small garment units have been left to fend for themselves.

But, now a revolution of sorts is taking place in the garment manufacturing sector in Vietnam. The big clothing producing units, who have enough orders to take them through the first six months of 2009, are lending a helping hand to small units by outsourcing their orders to them.

The Vietnam National Textile and Garment Group (Vinatex) and the Vietnam Textile and Apparel Association (Vitas) have drafted a plan under which big manufacturing companies in Vitas will share their orders with small and medium firms, in a bid to help them survive the crisis.

Vinatex has taken the lead in sharing its orders with its smaller counterparts, but at the same time is keeping a close eye on the manufacturing process to ensure there are no quality problems as well ensuring that these small units do not poach their buyers in the future by quoting low prices.

Fibre2fashion News Desk - India

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